The Morning Vibe

24/02/12 -- The German parliament is set to vote to block any further increases to the existing EUR750 billion bailout fund. In it's clearest "we've had enough" statement yet the draft text says: "European solidarity is not an end in itself and should not be a one-way street. Germany’s engagement has reached it limits," reports today's Telegraph.

The euro has been as high as 85p against the pound this morning, it's best level since before Christmas. I'd have thought that this news, which the Telegraph sees as "vastly complicating Greece’s rescue package" will put paid to any further rises.

The Buenos Aires Grain Exchange has left its forecasts for Argentine soybean and corn production unchanged this week at 46.2 MMT and 21.3 MMT respectively.

Iran has bought 500,000 MT of Russian wheat and 300,000 MT from Australia this week, according to Reuters. The purchases are said to have been made at "premiums well over international prices". Reuters also report that Iran are in negotiations with Pakistan to barter 1 MMT of Pakistani wheat in exchange for iron ore and fertiliser.

Brent crude hit an all-time high in both euro and sterling terms yesterday, surpassing even the highs seen during the oil price surge of mid-2008.

Makes you think "I wonder why Ensus isn't open then" that bit of news doesn't it? There's no news on that front though as far as I am aware. As for Vivergo "late spring" still seems to be the official line, but I wouldn't put your money on that let alone my own.

Mar 12 Paris wheat is down EUR1.50/tonne in early trade, that puts it within EUR1.50/tonne of it's lowest close in a month.

Soybeans are a little higher in overnight trade with Mar 12 up 1 1/4 cents to USD12.78/bu. A front month hasn't closed that high since September 2011.

So, we still seem to have a tug of war between beans wanting to go higher and corn & wheat looking a bit top heavy.